2019 in France - What you should know to start the New Year
Implementation of the PAYE system as from January 1, 2019
Taxpayers receiving non-French source income will pay
their French income tax as from January 2019 under
automatic monthly debit on their French bank account.
These installments are automatically calculated by the
tax authorities, based on your latest (2017) income tax
return. The amount is specified on your latest tax bill
you received in 2018.
- French tax filling requirements will be maintained
in May 2019.
Because of the lack of visibility, we can assist the UK
citizens who have moved to France during the year 2018 to
enter the PAYE system as from January 1, 2019.
This proof of residency in France and registration with
the French tax authorities may facilitate the process to
apply from March 2019 (in the event of no deal) for the new
registration system which will be brought in and which will
replace the “cartes de séjour”
under the existing EU system.
Important for S1 holder – Reduction of the social taxes from
17,20% to 7,50% for taxpayer, resident or non-resident in
France, who is affiliated with a
social security regime of a European country as well as
Island, Norway, Liechtenstein and Switzerland
As from January 1, 2019 for investment and passive
income, and mainly interest, income deriving from
withdrawals from « Assurance-vie » , dividends,
January 1, 2018 for rental income deriving from
unfurnished rental properties, capital gain on sale of
stocks and capital gain on sale of real estate.
(Loi de Financement de la
Sécurité Sociale pour 2019.
Non-disclosure of the non-French bank accounts and
non-French life insurance policies. The sanctions have been
In case of non-disclosure :
of limitations is 10 years (starting in 2009 for bank
account held in European countries).
or “amendes” are 1500 € per bank account and life
insurance policy undisclosed, with no maximum, for the
last three years: 2016, 2017 & 2018.
can be considered as taxable to income tax if the origin
of the funds cannot be provided and that it cannot be
demonstrated that the funds have already been taxed or
were exempt of tax.
deriving from the bank accounts and the life insurance
policy are fully taxable.
tax penalty of 40% and since 2018 of 80% on the income
is assessed. The 80% penalty should normally be avoided
in the course of a spontaneous disclosure.
interest rate imposed for late payment is 0.40% per
month on the tax due (income tax and wealth tax) with no
criminal sanctions can be imposed by the French tax
authorities of 500 000 € of financial penalty and 5
years imprisonment if it is demonstrated that the bank
accounts have been intentionally undisclosed.